The US Dollar fell against Bitcoin after the rate hike. Bitcoin prices dropped a bit. BTC was supported, and could see a new increase over the $20,000.500 resistance.
- Bitcoin continued to fall and was tested at the $20,000 support level.
- The daily simple moving average is at the hourly low of $20,500.
- A major bearish trend line is emerging with resistance at $20,520 (data feed Kraken).
- If the pair clears both the $100 hourly SMA (and $20,500), it could see a new increase.
Bitcoin Prices Drop Further
Bitcoin prices struggled to keep pace with the move above $20,650 resistance. BTC traded lower than $20,400 after the Fed rate increase of 0.75 basis points.
Below the $20,250 level of support, the price traded near the $20,000 mark. Near $20,059 was the lowest point. The price has since corrected its losses. A move higher than the $20,250 level was observed. Price climbed to above 23.6% Fib Retracement Level of recent fall from $20,864 swing high, to $20,059 low.
The Bitcoin price currently trades below $20,000. This is in line with the simple moving average of 100 hours. A major bearish trendline is also visible on the hourly BTC/USD chart with resistance close to $20,520.
The $20,370 level is the immediate resistance. It is located near the 20,450 level. This is close to the Fib retracement of 50% the decline from $20,864 high to $20,059 lowest. The trend line is at 20,500. It also has the 100 hourly simple moving mean.
Source: BTCUSD from TradingView.com
Clear moves beyond the $20,500 area could push the price higher. There is still a significant resistance at $21,000. Above which, the price could start to rise steadily.
BTC: More losses
Bitcoin could continue its slide if it fails to break the $20,500 resistance level. Support for the downside lies near the $20,000.
Near the $20,050 area is the next support. There is an immediate support at $20,000 and a chance of a steep decline below that level. The price could fall to $19,200 in this scenario.
Technical indicators
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.
Major Support Levels – $20,200, followed by $20,000.
Major Resistance Levels – $20,370, $20,450 and $20,500.
